Bank of Korea to stand pat for now, views split on further easing: Reuters poll

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Bank of Korea to stand pat for now, views split on further easing: Reuters poll
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South Korea's central bank is expected to keep its policy rate unchanged at...

SEOUL - South Korea’s central bank is expected to keep its policy rate unchanged at its rate review this week, a Reuters poll showed on Wednesday, although views are split on whether there will be further easing this year.

All 33 analysts surveyed by Reuters predicted the central bank’s seven-member board would hold the policy rate steady at 1.25% at its first policy meeting of the year on Friday. The majority of analysts see the central bank holding back on further easing for now, however, due to signs of economic recovery although persistently mild inflation has added pressure on policymakers to maintain easy policy.

South Korea’s trade-reliant economy has been among those worst-hit by disruptions to world supply chains from trade tensions, in a blow to business confidence and investment.

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